If the government grants tax credits to first-time homebuyers, the supply of houses would increase and the price of housing would fall.
Answer the following statement true (T) or false (F)
False
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According to your text, the "market economy" can best be understood as
A) an institution created by British merchants around the time of Smith's Wealth of Nations. B) an extremely complex institution that emerged out of individuals specializing and trading among each other. C) an institution unique to America. D) an institution that could not exist in the absence of regulation.
The cost of a variable input, such as the wage paid to workers, decreases. This decrease shifts the
A) total fixed cost curve downward. B) marginal product of labor curve downward. C) average variable cost curve downward. D) marginal product of labor curve upward.
In the above figure, the rise in the price of a gallon of gasoline that created the movement from point C to point A would be shown as a movement ________ along the demand curve for ________
A) upward; coffee B) downward; coffee C) upward; gasoline D) downward; gasoline
Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of the consumer surplus in the market?
A. $121,000 B. $60,500 C. $136,125 D. $0